Should I Buy an Apartment In Brooklyn?
If you have been living in New York City for some time now, and you are ready to take the financial commitment associated with buying an apartment, then buying in Brooklyn presents a great opportunity.
There are numerous reasons that buying an apartment in Brooklyn makes financial sense. The following benefits should be considered:
Sever ties with your landlord. You will be the owner of your property. Instead of being stuck with paying your monthly rent, you will get to pay off your mortgage instead. Why is a mortgage better than paying rent? Simple. Paying your mortgage every month allows you to build equity in your apartment and also gives you the benefit of deducting the mortgage interest. Also, you won't need to deal with rent increases.
Increased property values. The Brooklyn real estate market has been on a tear. From Q4 2015 to Q4 2016, Brooklyn condos have seen an increase in average and median sales prices. In 2016, the average sales price for Brooklyn condos went up to $1,141,570. Of course, there are many Brooklyn condos that are much cheaper than this and numerous condos that are significantly more expensive. The lesson here is that property values in Brooklyn continue increasing, and if you want to take advantage of this opportunity, you can't stand on the sidelines. This gives you the opportunity to sell your investment at a significant profit down the line or even take out another loan against it.
Brooklyn rents are going up. The Brooklyn rental market continues to increase in value, alongside actual property values. While this is great for landlords who are looking to maximize the yield of their properties, this puts tenants in a precarious state, whereby they have the bear the burden of continued rent increases or being forced to make decisions to mover further away from the neighborhood in which they currently reside.
Brooklyn is a brand of its own. Long gone are the days where being in "the city" means being in Manhattan. Brooklyn has developed a following of its own and is considered a prime component of the social fabric that makes up New York City. Real estate developers have become aware of this trend as well and continue to build up neighborhoods. As more residents continue to demand Brooklyn real estate, developers can barely keep up. Also, from a social perspective, restaurants, night life, cafes and boutiques can no longer afford to experiment in Manhattan and are therefore moving to Brooklyn. This makes it all the more exciting for residents who live and who are considering moving to Brooklyn.
Brooklyn has many unique neighborhoods. Brooklyn is made up several dozen neighborhoods that each have their own style and flavor. Whether you are considering the popular waterfront neighborhoods like Williamsburg or Dumbo, or maybe a neighborhood like Fort Greene or Park Slope, Brooklyn has something for everyone. Some of our personal favorites include Bushwick, Crown Heights, Clinton Hill, Prospect Heights and Prospect Lefferts Gardens.
Read: NY Times Article: Bushwick, Brooklyn, Colorful and Eclectic
I rent in Manhattan. Is buying in Brooklyn right for me?
This is actually a common trend for residents who rent in Manhattan to buy their first apartment in Brooklyn. The expensive Manhattan rents that renters are used to paying don't necessarily translate into their ability to buy a condo or co-op in Manhattan, since the property prices are significantly higher in most parts of Manhattan, which also translate into higher down payments.
Therefore, it is very common for a first-time homebuyer to consider buying in Brooklyn, even though they've been living in Manhattan all of this time. We've worked with many clients who have gone through this process.
Read: First-Time Homebuyer Guide and Should I Buy an Apartment in NYC?
Buying real estate in Brooklyn is an investment. Even if you don't consider yourself an investor, buying into the Brooklyn condo market is an investment, and it is a very good one at that. Whether you are looking to buy into established Brooklyn waterfront neighborhoods or up-and-coming, gentrifying neighborhoods, the Brooklyn market continues to evolve.
Some great Brooklyn resources to look into:
Looking to learn more about the Brooklyn real estate market?
Don't hesitate to reach out to us for a complimentary consultation. We are Brooklyn experts and would be happy to assist you in your pursuit of New York City real estate.